The Enforcement Directorate (ED) has served Google and Meta with summons, requesting their top representatives to report for questioning on July 21 in relation to a probe into illegal online gambling apps. The ED is probing the way such apps were said to have been promoted on these platforms by these companies, potentially helping to launder crores of rupees.
The move is part of a wider crackdown on web-based betting networks, particularly in the wake of the high-profile Mahadev betting app case. As per ED officials, promotions for these unlawful platforms were displayed prominently on social media and search engines, reaching millions of users. Officials suspect this extensive reach could have helped drive the massive scale of operations and illicit fund flows.
Both firms will be interrogated under sections of the Prevention of Money Laundering Act (PMLA). The ED will presumably ask for explanations on:
- How such advertisements for betting were cleared
- Revenue generated from them
- Ad content internal rules, particularly for gambling apps
- If any advance warnings or notices were given by the government and with what action were they followed
This action highlights increased pressure on tech platforms to regulate the types of content and ads they feature. Though internet betting is prohibited or regulated in most Indian states, loopholes have enabled a number of sites to continue operating as “fantasy” or “skill-based” gaming.
Experts in the industry indicate that the fate of this case can redefine digital ad norms in India. In case they are held to be negligent, platforms can expect more stringent compliance requirements and potential monetary penalties. Google and Meta, to date, have not made any formal statements regarding the summons.
